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3 Necessary Tools for the High Rolling Affiliate Marketer
What does it take to become a successful Affiliate Marketer? What are the ingredients of an affiliate marketing success story? Is there a shortcut to Affiliate Marketing glory? All these questions play around in the minds of affiliate...
9 Questions You Should Ask Before You Affiliate With Anybody
9 Questions you should ask before affiliating with anybody Becoming an affiliate with an established company is an excellent way for a new Internet entrepreneur to learn about online business and build an income for his own business. But do not...
Affiliate Marketing is a Brilliant Way to Begin On-line Marketing
Affiliate Marketing is a brilliant way to begin earning on the Internet, for those of us who haven't as yet got our own products. To make money in life, in business, you need to market something, a book, a car, a computer, yourself or whatever. By...
How to Build a Huge Opt-In List as an Affiliate…
Copyright 2005 Kurma Group One of the biggest mistakes I see affiliates making everyday is that their building a short-term business where they just make a small sale – one sale at a time. If they stop running ads today, their business would shut...
Seven Ways to Set Yourself Apart From Other Affiliate Marketers
Seven Ways to Set Yourself Apart From Other Affiliate Marketers By DeAnna Spencer Okay so you’ve read (fill in the blank with internet guru’s name here)’s book and decided that affiliate marketing is the way for you to earn some extra money online....
 
Affiliate Marketing What Is It And Why Use It?

Affiliate Marketing is having Affiliates do your Marketing for you. What I mean by Affiliate is someone who tells people about your product/service and you pay them for a desired response, such as a purchase.

Affiliate Marketing is one of the best ways to get the word out about your product/service.

The best way to pay Affiliates is pay per sale. This means that you only have to pay your Affiliates when they actually make a sale. This reduces your advertising costs dramatically. your Affiliates take on all the risks so you don't have to worry about wasting your money on advertising which may not produce any results.

Using Affiliate is a very cheap way to advertise, however it is very effective. The software required to start up your own Affiliate program can cost only about $50 per month.

Then after that just wait for people to start promoting your product/service for you.

Please remember that 5% of your Affiliates will do 95% of the selling. What I mean by this is that most of your Affiliates will just sit there and do nothing. This can be countered if you teach them what to do, exactly how to do it and providing everything for them so they have to do as little work as possible.

To find out about teaching your Affiliates please see the "How To Super Charge Your Affiliates" article

You don't have to use this form of advertising just to sell your product or service. You can also use it to grow your opt-in mailing list. This is discussed in another article.



How Much Should You Pay Your Affiliates

How much you pay your Affiliates really depends on how much your product/service costs, its profit margin, how much you're willing to give up and what action you want to take


place.

Lets say that your product is priced at $100. Lets also assume that it cost you $10 to make it. This leaves you with $90 profit.

How much of this do you want to give away to the person that made this sale possible?

Personally, I believe that you should give a rather high percentage of the profits back to the affiliate (Depending on how many sales they regularly generate), because without them, you wouldn't have made that particular sale at all, so reward them for it.

A fairly decent reward is about 50% of the revenue generated. Your product is priced at $100 so a $50 commission is quite generous. It really depends on your other costs (such as a mortgage) you have, which would help decide on a fair commission to both you and the Affiliate.

Another factor which plays a part is how much additional advertising you do, such as pay per click. For example, if you rely solely on your Affiliates to Market for you, then you may want to reduce the commission you pay to them to help you survive. However, you may want to pay them more, to encourage them to send more sales you way. It really is a judgment call.

On the other hand, if you advertise in other ways effectively, then you can afford to pay higher commissions, because you're not putting all your eggs in one basket.

In the end it's all down to how greedy or generous you are. The best advice I can give you is to pay the affiliate what you think he/she deserves. Hopefully that way everyone is happy and earning their fair share.

That is the key to a successful affiliate program.

About the Author

Stephen Warren, the creator and webmaster of http://www.marketershandbook.com , a completely free business and marketing resource which anyone may use.

 

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Content Menu
  • 101 affiliate research results affiliate program that pays

  • 10 essential qualities successful affiliates share

  • 10 great ways to fail at affiliate selling

  • 10 new year resolutions for affiliate marketers in 2003

  • 10 profit boosting tips to increase the success of your affiliate program

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  • dont even think about affiliate marketing until youve read this part 1

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  • generate more sales in any affiliate program part five

  • generate more sales in any affiliate program part four

  • generate more sales in any affiliate program part one

  • generate more sales in any affiliate program part six

  • generate more sales in any affiliate program part three

  • generate more sales in any affiliate program part two

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